Protection and Indemnity
Under Protection and Indemnity , shortly P & I ( German protection and compensation ) is understood in the maritime shipping a transport insurance against risks that can happen to a ship. The insurance takes place via so-called P&I clubs, which cover this risk jointly from the contributions of the shipowners insured in this way.
details
With P&I insurance, ships are insured against risks that are not covered by the rules of Lloyd's Policy and its Institute Cargo Clauses (ICC). The insurance is divided into two areas, protection ( English protection ) and compensation ( English indemnity ).
In the area of protection, the P&I Club covers, for example, damage to other ships caused by the ship (except in the event of a collision) and damage to all types of fixed objects caused by the ship, claims for loss of human life, bodily harm or other civil law claims and expenses for paid for the lifting or removal of the wreckage of an insured ship. The protection area also includes the reimbursement of a quarter of the claim for damage caused by the ship to another vehicle (also in the event of a collision) and participation in cargo damage in an average size if it was caused by negligent navigation of the ship.
The area of compensation includes, among other things, cargo impairment and damage if this has been recognized in the bill of lading , cargo loss in a general average due to a ship unseaworthy, fines for customs offenses or violation of immigration regulations.
The P&I clubs cover their expenses from a contribution to the members, which is based on the gross measurement of the insured ships. The allocation is divided into an advance payment, from which all ongoing procedures are initially processed, and a supplementary allocation or a repayment after the settlement of the obligations of the past year.
See also
literature
- J. Bes: Chartering and Shipping Terms: Manual for trampoline and liner shipping . 2nd Edition. Uitgeverij C. De Boer Jr., Hilversum 1968.
